MARTIN Lewis has revealed how Brits on Universal Credit can get £300 free cash with a specific savings account.
The money-saving expert shared the “really important” tip on his ITV Budget special this evening.
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He explained that people on Universal Credit or are on working tax credit could end up being handed cash by the government if they set up a Help to Save account.
Martin explained that it’s super simple to sign up for, and added: “It is the best possible savings account there is – nothing like it.”
Help to Save allows those receiving Universal Credit to get a bonus of 50p for every £1 saved over four years. Bonuses are given at the end of the second and fourth years.
On the show, Lewis explained that if you were to save the maximum amount per month, which is £50, for one year, and had a total of £600 saved, you’d get £300 in free cash at the end of year two.
Even if you’d saved the £600 but had to pull it out for an emergency, the government would still give you the bonus £300.
The government would always half-match the greatest amount you ever saved.
So if this is the only savings account you hold it won’t affect your Universal Credit payments.
The expert continued: “It’s very powerful, very worth doing if you’re in that position.”
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A clip was then played on the show of a woman who thanked Martin for the advice he had given on the Help to Save account.
The woman said: “I’d been paying £50 a month and my account showed £1,200.
“And the government gave me £600 – it’s amazing.”
Yesterday Martin offered his verdict on the Budget – he spoke to tax, energy bills, pensions, and free cash.
He was speaking after seven major changes were announced for childcare amid yesterday’s Budget, while the price of a packet of cigarettes rose to £14.39.
Elsewhere, Jeremy Hunt gave millions of workers a pension boost by scrapping the lifetime pension allowance (LTA) to tempt people to work longer.
The Energy Price Guarantee (EPG) cap will also continue at £2,500 for another three months.
It was meant to rise to £3,000 a year for households in April but Hunt scrapped those plans today.
This will save the average household around £160, the government said.
Meanwhile, it was also announced drivers won’t pay more for fuel as duty was frozen.
How does help to save work?
If you’re able to save money while claiming Universal Credit it’s a good idea.
The Help to Save scheme pays a bonus on top of the money you stash away in the account.
Savers will get a 50p bonus for every £1 they put in the account over four years.
You can save between £1 and £50 every month, so you would get a £25 bonus each month if you paid in the maximum amount each time.
Over a year that adds up to £300, and reaches £1,200 over the full four years that you can have an account.
You will get your bonuses at the end of the second and fourth years of having the account.
You can find out who’s eligible and how to get an account in our guide.
